Summary of Statement No. 68

Research and Development Arrangements (Issued 10/82)

Summary

This Statement specifies how an enterprise should account for its obligation under an arrangement for the funding of its research and development by others. The enterprise must determine whether it is obligated only to perform contractual research and development for others, or is otherwise obligated. To the extent that the enterprise is obligated to repay the other parties, it records a liability and charges research and development costs to expense as incurred.